Use the Information Below to Answer the Following Questions

question 44

Multiple Choice

Use the information below to answer the following questions.
Fact 12.4.1
Franklin is a fiddlehead farmer. He sold 10 bags of fiddleheads last month, with total fixed cost of $100 and total variable cost of $50.
-Refer to Fact 12.4.1. If the price of fiddleheads last month was $15 per bag, Franklin

• A)should have shut down because total revenue did not cover total variable cost.
• B)incurred an economic loss of $135.
• C)made zero economic profit.
• D)made an economic profit of $50.
• E)made an economic profit of $100.

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Definitions:

Semiannual Coupon

A bond or other fixed-income security that pays interest to the holder every six months.

Interest Rate

The price, in terms of a percentage of the principal, that a borrower needs to pay a lender to utilize their financial resources.

Bond's Price

The market price for which a bond is bought or sold, influenced by factors like interest rates, the bond's credit quality, and its maturity date.

Market Value Basis

The valuation of assets or securities based on the current market prices as opposed to historical costs or theoretical values.